The growing textile industry of India offers excellent opportunities to Indian Readymade Garments companies in foreign countries. Demand has seen boosts in recent years, making India the largest producer of garments in the world.
Today, the Indian Readymade Garments industry contributes approx 12% of export. If we see the sector-wise growth, the textile is India’s number one sector, significantly contributing to jobs for women.
If you want to start a Readymade Garments company in India to export the product to a foreign market, it is the right time to start a business.
A Step-by-Step Guide To Exporting Readymade Garments From India
The channels for exporting Readymade Garments are quite streamlined for the exporters. The government is also taking many initiatives to export goods from India to the developed country and boost the overall export of the country.
The Export-Import (EXIM) policy of India assists the new players entering the industry to help them build the necessary infrastructure quickly so they can start production.
Policies are designed to train the exporters to stand in the international market. The policy covers different aspects ensuring the company’s eligibility to export specific Readymade Garments. Guidance is provided about the export procedures and export incentives.
Procedure To Export Readymade Garments From India
Every company must follow these guidelines for the smooth functioning of the export business in India. Kindly note the steps carefully and follow the instruction to avoid challenges.
1) Registration of the export company with the government to obtain the company registration number. The registration of the company is required to participate in the trading business. Only authorized companies are allowed to involve in export business.
2) Getting an Export license from the Directorate General of Foreign Trade (DGFT).
3) Opening a bank business account to manage your finances and collect payment from foreign buyers through swift transfer facilities. All the cheques and cash payments of the business will be deposited in the bank account.
4) Research the international market to find demand for Readymade Garments. The product you sell in the market should match the customers’ requests. After you get sufficient data, you look for an opportunity abroad to sell the product.
5) Finding the customers who have demand for the product. Here your sales and marketing skill will play a critical role. Show the samples to the customers, provide sufficient information and convince them about the service. Once you have the approval from the client, you can discuss the payment term.
6) Once both parties agree with the payment terms, the manufacturing company can start production and export the goods.
7) As a manufacturing company, you should know the government policies and quality standards for the goods sold in the importing country. Avoid rejection by providing the highest quality product to the customers.
Readymade Garments are often rejected when the product quality differs from the specification. It will have a bad impression on your company; hence, you should keep the quality of the goods as the highest priority in the business.
8) In some cases, the exporting company would require to take the necessary certificates or permits to export the goods. Check with the customs authority and the local advisories for certification rules in the destination country.
9) Once the goods are manufactured, the next step is delivering them without damaging them during transport. Hire professional goods freight forwarder companies to ship your goods through safe and secure channels.
Reliable container handling companies will take care of your goods during transit and deliver them to the final destination on time.
10) Keep track of the goods until it reaches their final destination. Delays or any mismanagement during transportation should be handled quickly. Many unforeseen events will occur when dealing in the international market and impact the delivery time. Check the progress daily and keep track of shipping. Your order is considered complete when the product is delivered, and the customer pays full payment.
Documents Required For Exporting Readymade Garments From India.
The government has strict rules for exporting specific goods or trade in the international market. Here is the list of the documents the garment company has to obtain to qualify for trading. The document varies depending on the goods and services you offer in the international market.
- An export license from the DGFT
- Complete invoice details
- Airway bills or the bill of lading
- Good certificate of origin
- Export declaration form
- Shipping order details from the freight forwarders
- Debit and credit order note
If you are new to the export business, you can seek professional consultation. The Impexperts team will assist you in getting your company’s required documents and registration to qualify for the Readymade Garments business. Have the expert to the back, so you will have someone to support you early in the trading business.
Export Readymade Garments business is easy to start in India because the resources and ecosystem to run a successful business are already available. On top of that, India has a good reputation in the international market for garment production. Thus you will enjoy instant growth when approaching customers in a foreign country. Follow the given instruction when starting the Readymade Garments business.